The Greek Government has passed the harsh austerity package on which its continued international funding depends, offering the nation and the euro zone a brief respite from crisis.
It faces a second, more complex vote tomorrow on laws to enforce the measures.
Observers warned that implementing the austerity program would be difficult, meaning the vote has bought breathing space but an eventual Greek default remains likely.
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The measures garnered 155 votes to 138 despite a second consecutive day of violent public protests in the square outside, where tens of thousands gathered. Crowds repeatedly rushed police with missiles and were forced back with tear gas and stun grenades.
In the debate, the government said there was no alternative to austerity but the opposition said there was too much pain for too little gain.
Professor Kevin Featherstone, of the Hellenic Observatory at the London School of Economics, said the vote had bought time for Greece but the crucial test would be the delivery of immediate reform measures.
''I think the Greek government needs to have a quick win on things like privatisation in order to convince international markets that it is serious and can see through its schedule.''
Before the vote, an independent European economist, Megan Green, warned that while a positive vote would avert immediate crisis, it would not change the fundamentals.
Implementing it would be so hard that a default and snap election would still be probable, she told the BBC.
The €25 billion ($34 billion) austerity program of tax rises, spending cuts and privatisations is fiercely resisted by the Greek opposition, most of the public and several members of the ruling party, who believe existing austerity measures have triggered the worst recession in modern Greek history.
The program is demanded by the European Union and the International Monetary Fund, who say Greece will not otherwise receive the next tranche of its €110 bailout loan.
Without the money Greece, which owes €350 billion, will go bankrupt and trigger the euro zone's first sovereign default. This could set off a chain reaction of financial collapses across Europe and perhaps the world.
Government MP and economic adviser, Elena Panaritis, said: ''There's an American expression - 'No pain, no gain' … Unfortunately we have to revise our economic way of doing business.''
The former Greek finance minister, Stefanos Manos, said of the vote: ''It keeps Greece afloat and gives it a little more time to put its house in order … In my opinion, the high debt we have now is not the problem. The problem is the propensity of Greek governments to spend much more than they earn and that is a problem that has not been resolved.''
with Guardian News & Media
Read more: http://www.smh.com.au/world/breathin...#ixzz1QhcPvKy1
It faces a second, more complex vote tomorrow on laws to enforce the measures.
Observers warned that implementing the austerity program would be difficult, meaning the vote has bought breathing space but an eventual Greek default remains likely.
Advertisement: Story continues below
The measures garnered 155 votes to 138 despite a second consecutive day of violent public protests in the square outside, where tens of thousands gathered. Crowds repeatedly rushed police with missiles and were forced back with tear gas and stun grenades.
In the debate, the government said there was no alternative to austerity but the opposition said there was too much pain for too little gain.
Professor Kevin Featherstone, of the Hellenic Observatory at the London School of Economics, said the vote had bought time for Greece but the crucial test would be the delivery of immediate reform measures.
''I think the Greek government needs to have a quick win on things like privatisation in order to convince international markets that it is serious and can see through its schedule.''
Before the vote, an independent European economist, Megan Green, warned that while a positive vote would avert immediate crisis, it would not change the fundamentals.
Implementing it would be so hard that a default and snap election would still be probable, she told the BBC.
The €25 billion ($34 billion) austerity program of tax rises, spending cuts and privatisations is fiercely resisted by the Greek opposition, most of the public and several members of the ruling party, who believe existing austerity measures have triggered the worst recession in modern Greek history.
The program is demanded by the European Union and the International Monetary Fund, who say Greece will not otherwise receive the next tranche of its €110 bailout loan.
Without the money Greece, which owes €350 billion, will go bankrupt and trigger the euro zone's first sovereign default. This could set off a chain reaction of financial collapses across Europe and perhaps the world.
Government MP and economic adviser, Elena Panaritis, said: ''There's an American expression - 'No pain, no gain' … Unfortunately we have to revise our economic way of doing business.''
The former Greek finance minister, Stefanos Manos, said of the vote: ''It keeps Greece afloat and gives it a little more time to put its house in order … In my opinion, the high debt we have now is not the problem. The problem is the propensity of Greek governments to spend much more than they earn and that is a problem that has not been resolved.''
with Guardian News & Media
Read more: http://www.smh.com.au/world/breathin...#ixzz1QhcPvKy1
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